U.S. producers, pipelines, and distributors performed well in delivering what apparently were record volumes of gas in December 1989, says American Gas Association Pres. George H. Lawrence.
December deliveries may have been 2.3 tcf of gas, 22% more than the average of 1.8 tcf. Last month was the coldest December in this century, 26% colder than normal nationwide.
An apparent monthly record of 700 bcf was withdrawn from storage during the month. The volume of gas in underground storage stood at slightly less than 7 tcf Oct. 1, 1989.
A TEST FOR INDUSTRY
Last month was the first severe test of the industry-with its leaner, more flexible, more competitive open access delivery system-which has changed dramatically since previous monthly consumption highs in 1979 and 1982.
The industry handled increased gas requirements without difficulty for the first 3 weeks of December.
Then record low temperatures and high winds in the Gulf of Mexico during the fourth week of December caused some freeze-ups of gas wells, significantly reducing production.
Despite this unprecedented event, gas consumers continued to be served and normal production was restored within 3-4 days, AGA said.
The situation shows that most areas of the country seeking added pipeline capacity are the ones that had difficulty dealing with the extremely cold weather.
Gas bills for many customers will be noticeably higher. The increase will be due mainly to greater volumes used for heating, not higher prices, Lawrence said.
AGA held to its October estimate that residential retail gas prices will be 6% higher this winter than last winter, given normal weather patterns.
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